Egg producer and NFU Cymru poultry board chairman Clare Morgan said supplier prices must rise to reflect the recent spike in feed prices.
Speaking at the opening day of Pembrokeshire County Show today (14 August) Mrs Morgan said recent spikes in commodity markets were putting “severe pressure” on Welsh poultry producers.
A combination of severe drought in North America and delayed harvest in western Europe has seen soya prices soar by 50% since the start of the year, while feed wheat has jumped £40/t in the last two months. In total two-thirds of production costs are now made up of feed.
Mrs Morgan, a free-range egg producer from Pembrokeshire said: “Unfortunately we are aware of reports of downward pressure from retailers on egg process at a time when out costs are soaring.
Unfortunately we are aware of reports of downward pressure from retailers on egg process at a time when out costs are soaring.”
Clare Morgan, NFU Cymru
“While consumer demand for Welsh poultrymeat and eggs are good producers cannot be expected to absorb these production cost increases – they need to be shared be the entire supply chain.
“In the interest of maintaining and hopefully continuing to expand poultry production in Wales, it is important that short-term supplier prices to farmers reflect the recent volatility and fundamental change in world commodity feed markets.”
Mrs Morgan added that long-term the whole supply chain needed to work together to deliver supply relationships which took into account inflation in production costs.
Feed price pressure takes its toll